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Albertsons to acquire United Supermarkets
September 10th, 2013
BOISE, Idaho – Albertsons LLC has agreed to acquire United Supermarkets LLC, a 50-store chain based in Lubbock, Texas. The terms of the transaction, which is expected to be complete by the end of October (subject to customary government approvals), were not disclosed.
On completion of the purchase, United will operate as a business unit under the present Albertsons organizational structure. Robert Taylor, chief executive officer of United, will become president of the chain and report directly to Bob Miller, CEO of Albertsons.
United operates three main banners: United Supermarkets, Market Street and Amigos. The company also operates seven convenience stores and 26 fuel centers under the United Express name. Additionally, United has two non-retail divisions: R.C. Taylor distributes tobacco, candy and general merchandise, while Praters manufactures several prepared food products, including meat, side dishes and fresh tortillas. Finally, a subsidiary, Llano Logistics, operates two distribution centers in Lubbock and Roanoke, Texas.
"United has built an exemplary operation in Texas, complementary to our own go-to-market strategy in many respects," said Miller. "The family and leadership team have done a tremendous job in establishing and perpetuating a remarkable service culture and commitment to fresh, quality foods throughout their stores, even as they’ve grown. They’ve also developed strong community programs that have engaged team members and given back tremendously to their Texas communities, just as our Albertsons stores do every day. Our team feels there is an exceptional opportunity to invest in and grow their brands."
United, which is family owned, was established in 1916. Plans call for it to operate in much the same way as it does currently, with decision-making centered at the local level, as is the case with the other operating divisions of Albertsons.
"United has an entrepreneurial spirit, just like Albertsons," Miller remarked. "We’ve learned over the last seven years that our decentralized operating strategy empowers local management to build stronger brands across diverse market areas. United has operated much the same way in their acquisitions of R.C. Taylor and Praters in 2007 and 2009, respectively. United runs a fantastic operation, and will maintain its own unique identity."
At present Albertsons fields 76 stores in Texas, most of which are in the Dallas-Fort Worth market. Upon completion of the United acquisition, Albertsons will operate about 650 stores and 11 distribution centers in 16 states.